We Believe That 95% of the Population of All Business

question 53

Multiple Choice

We believe that 95% of the population of all Business Statistics students consider statistics to be an exciting subject. Suppose we randomly and independently selected 21 students from the population. If the true percentage is really 95%, find the probability of observing 20 or more students who consider statistics to be an exciting subject. Round to six decimal places.

• A) 0.716972
• B) 0.340562
• C) 0.283028
• D) 0.376410

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Definitions:

Amount Owed

The total money that is due to be paid to a lender or creditor by the borrower.

Accounting Equation

The fundamental principle of accounting that states assets are equal to the sum of liabilities and owner's equity.

Creditor

An individual or institution to whom money is owed by the debtor or the borrower.

Cash Investment

Cash investment refers to funds invested into a business or market with the expectation of generating a financial return.